T-Mobile US Inc (NASDAQ:TMUS) is opting a merger with a cable company instead of a merger with with a fellow wireless carrier.
Alliance partner speculations
CFO Braxton Carter announced the company’s intention during a Deutche Bank Investor Conference. The market has been flooded with speculations that T-Mobile may end up forming an alliance with Sprint Corporation (NYSE:S). An alliance between T-Mobile and Sprint would most likely be the same. America would be left with only three major carriers nationally. However T-Mobile seems like it’s looking for a merger similar to AT&T Inc (NYSE:T) and DirecTV (NASDAQ:DTV). There are other speculations that Comcast Corporation (NASDAQ:CMCSA) or Charter Communications, Inc. (NASDAQ:CHTR) are likely to acquire or be acquired by T-Mobile. However neither Comcast, T-Mobile nor Charter commented in relation to the speculations.
Comcast as the likely partner for T-Mobile
T-Mobile has been benefiting on the competition recently. Tim Horan, an analyst with Oppenheimer predicted that T-Mobile is likely to pursue a merger with Comcast. He went further to state that if Comcast does not acquire T-Mobile then Charter will most likely acquire it. Charter currently is in the process of seeking approval to acquire Time Warner Cable (NYSE:TWC).
Dish likely to acquire T-Mobile
Horan is not very pessimistic on the probability of Dish Network (NASDAQ:DISH) acquiring T-Mobile. He gave the deal a 10% chance of occurrence. However, reports indicated that T-Mobile and Dish were having a stock deal negotiation that would leave T-Mobile as the minority in the merger. Without considering time, the four wireless companies are likely to form an alliance with a wireless company.
AT&T and DirecTV alliance
AT&T purchased DirecTV recently and this merger may be the impetus behind the projected alliance. AT&T declared their acquisition plans which could force Comcast into thinking about a wireless firm merger. Particularly the company merged an AT&T wireless plan adding up to four handsets and 10 GB on a monthly basis shared data with DirecTV satellite. It also involves DVR combination of up to 4 rooms. The offer is stated at $200 for a DirecTV ‘select’ bundle plan and it includes more than 145 channels and no ESPN.